Bharat Forge share price jumped as much as 3.7 per cent to Rs 610 apiece on BSE on Tuesday, after it received an order worth Rs 177.95 crore from the Ministry of Defence.
Bharat Forge announced an agreement with Paramount group to manufacture armoured vehicles in India. Image: Reuters
Bharat Forge share price jumped as much as 3.7 per cent to Rs 610 apiece on BSE on Tuesday, after it received an order worth Rs 177.95 crore from the Ministry of Defence. The company has received the order for protected vehicles under Emergency Procurement for the supply of Kalyani M4 vehicles. Bharat Forge shares hit a 52-week high of Rs 676.10 during the start of 2021. So far in the session, a total of 1.22 lakh shares have exchanged hands on BSE, while on the National Stock Exchange, 28.77 lakh shares have traded so far. According to an analyst, the recent order won by Bharat Forge from the Ministry of Defence is a piece of extremely positive news and is a testament to Bharat Forge’s manufacturing capabilities.
AR Ramachandran, Co-founder & Trainer, Tips2Trade, told Financial Express Online, technically, after a decent correction, Rs 583 will act as strong support for buyers. “Closing above 631 could trigger another strong uptrend in this stock,” Ramachandran added. From a 52-high level, Bharat Forge stock price is nearly 10 per cent down. On Monday, Bharat Forge announced an agreement with Paramount Group to manufacture armoured vehicles in India. This agreement was signed by both companies during the International Defence Expo held in Abu Dhabi. The company said that the Kalyani M4 will see service with the Indian Armed Forces in the very near future. “The Kalyani M4 successfully completed a series of extreme vehicle trials in some of the toughest environments in India,” the company said.
Domestic research and brokerage firm Emkay Global Financial Services has given a ‘buy’ rating to the stock with a target of Rs 760, implying an upside of nearly 30 per cent from the previous close. Analysts at the brokerage firm believe that there is a significant potential for segments such as Defense, Aerospace, E-mobility and Railways in the medium term. “Bharat Forge’s peak position in automotive forgings, focus on diversification and potential cyclical recovery in the core segments support our positive view,” analysts said. Also, Bharat Forge’s revenue is expected to grow 46 per cent in FY22E, driven by a strong rebound in automotive and industrial segments.
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